Enforcement Directorate sniffs web of shell firms in irregularities in ration distribution system in Bengal

 Investigators said that between 2006 and 2008, three companies were set up with arrested Calcutta-based businessman Bakibur Rahman as one of their directors

Kinsuk Basu, TT, Calcutta, 03.11.23 : A web of shell companies was allegedly set up, shut down and later reopened under separate names with different sets of directors to park the proceeds of crime from the reported irregularities in the ration distribution system in Bengal with the alleged involvement of arrested minister Jyoti Priya Mallick, senior ED officers probing the money trail said.

Throughout the better part of Thursday, investigators from the central investigating agency tried piecing together the pathways of fund transfers through some of these allegedly fictitious companies while questioning Mallick in their custody and cross-checking his answers with those of his close acquaintances including Avijit Das, the minister’s former personal assistant.

Besides Mallick, Das was also grilled at the ED’s office in Salt Lake’s CGO Complex during the day.

Investigators said that between 2006 and 2008, three companies were set up with arrested Calcutta-based businessman Bakibur Rahman as one of their directors. While in custody Bakibur reportedly admitted that over Rs 8 crore was offered as a loan to the arrested minister from these companies, sources in the central investigating agency said. The amounts were never returned and the companies wound up. The three companies had the same address on Jessore Road near Nagerbazar in Dum Dum, senior officers who are a part of the investigation, said.

“Two more Bankura-based companies were later set up and it appears that these entities were created to park the proceeds of crime,” said a senior officer. “We are trying to find out the role of the minister’s chartered accountant in setting up these companies.”

On Thursday, a team of ED officials visited the chartered accountant’s Netaji Nagar apartment in Calcutta and carried out a search. On October 26, a team had visited the apartment and later sealed it in the absence of the owner.

Allegedly, a section of rice mill owners led by Rahman offered less volume of rice to the distributors against the sanctioned quota despite the state government paying for the entire amount.

Preliminary investigations by the ED revealed that against a kilo of rice, mill owners would supply around 200 grams less to each of the distributors against a system of payment. The amount that remained undelivered was sold in the retail market at the prevailing market rates, thereby allegedly helping a section of mill owners mint crores in the process.

Weighing machines

Senior officials in the department of food and supplies said the state government was in the process of installing e-weighing machines at ration shops across the state.

“It will ensure that no beneficiary receives an item less than what he is entitled to according to the data stored in the ration card,” said a senior official.

“If the volume is less than what he is supposed to get, the slip won’t be generated and that data will get reflected through a central monitoring system.”

“We will start installing the e-weighing machines from December onwards across over 2,000 shops engaged in public distribution of ration,” the official added.

Courtesy & source: The Telegraph

https://www.telegraphindia.com/west-bengal/enforcement-directorate-sniffs-web-of-shell-firms-in-irregularities-in-ration-distribution-system-in-bengal/cid/1977243